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The Untapped Potential of Tech and Finance in Reducing Food Supply Chain Waste

May03



In the realm of global sustainability, one of the most critical challenges we face today is the efficient management of our food supply chains. Not only does this affect the availability and quality of food, but it also has significant environmental impacts. As we discussed in a recent episode of the Sustainable Supply Chain Podcast with Pat McCullough, CEO of ProducePay, the integration of capital and technology can play a pivotal role in reducing waste in the global produce supply chain.

The Scale of the Problem

Globally, approximately one-third of all food produced is lost or wasted, which amounts to about 1.3 billion tonnes per year. This isn't just a humanitarian concern; it's a substantial economic loss and a needless contributor to greenhouse gas emissions. In the realm of fruits and vegetables, the waste percentage can be even higher due to perishability and handling issues during transport and storage.

Insights from the Podcast

During the podcast, McCullough shared how ProducePay is addressing these challenges by providing capital to farms and leveraging technology to improve the efficiency and reliability of produce supply chains. ProducePay's model helps reduce the time produce spends in transit and storage, which is crucial for perishable items. By financing growers and investing in technology that optimises the harvesting, packaging, and transportation processes, they help ensure that produce reaches markets in optimal condition, thus reducing waste.

 

By Tom Raftery

Keywords: Finance, Supply Chain, Sustainability

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